Dow transports bounce back into positive territory, while the Dow industrials stay down

The Dow Jones Transportation Average have bounced back into positive territory, which could be an encouraging sign for investors in the face of sharp declines in the broader stock market. The Dow transports were up 0.1%, with 14 of 20 components trading higher, after being down as much as 0.5% earlier in the session. Meanwhile, the Dow Jones Industrial Average has down 153 points, with 26 of 30 components losing ground, while the S&P 500 shed 0.6% and the Nasdaq Composite fell 0.6%. The number of advancing stocks outnumbered decliners by a 2,187 to 779 score on the NYSE and by an 1,872 to 785 margin on the Nasdaq. The century-old Dow Theory of market analysis suggests that the Dow transports and Dow industrials should trend in similar directions, because "the industrials make and the transports take," according to S&P Dow Jones Indices. Basically, the transports are still taking, the industrials have reason to keep making.

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